Tether Plans $1 Billion USDT Chain Swap to Tron Network, Here’s All

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Tether, a well-known stablecoin issuer, together with a top cryptocurrency trading platform, has disclosed intentions to carry out a $1 billion conversion of USDT (Tether’s stablecoin) from various blockchains onto the Tron network. This exchange will improve the compatibility and seamless interaction between different networks that support this change.

Details of the Tether USDT Chain Swap to Tron Network

On the 6th of January, Tether disclosed through its X account that they are collaborating with a leading third-party exchange to shift approximately $1 billion in USDT. This operation involves moving a part of the stablecoin stored in offline wallets to the Tron blockchain.

Tether’s stablecoin, known as USDT, can be found on multiple platforms like Ethereum, Solana, and Tron. The issuer explains that this won’t affect the overall USDT supply, but it does ensure that liquidity is maximized across these different networks. This setup allows traders and users to utilize their assets on any blockchain that Tether supports.

More recently, the stablecoin issuer has followed other companies in boosting their Bitcoin investments, purchasing 7,629 Bitcoins worth approximately $705.25 million. These assets, which had been inactive on Bitfinex for nine months, now increase Tether’s total Bitcoin holdings to 82,983 BTC. The initial investment of $2.99 billion has grown to a current value of $7.68 billion, demonstrating their expanding Bitcoin strategy.

USDT’s Dominance in the Stablecoin Market

Furthermore, USDT remains the leader in the stablecoin market, with its market capitalization surpassing $137 billion. Its main applications range from transactions and trading to cross-border operations. In the past 24 hours, this stablecoin has seen a significant increase in trading activity, reporting a volume of $107 billion – a jump by 69%.

USDC, the second largest stablecoin by market value, stands slightly behind with a market cap of approximately $45.8 billion and a daily trading volume of around $7.1 billion. Tether’s unique feature of being pegged to the U.S. dollar has made it an indispensable instrument for traders who aim to navigate the volatile crypto market more smoothly.

Nevertheless, even as Bitcoin’s influence expands, critic Peter Schiff has leveled accusations of market manipulation against Tether, following their latest 7,629 BTC purchase. Schiff contends that Tether creates USDT without any tangible assets, similar to quantitative easing, which he finds problematic. Despite Tether’s backing of USDT with reserves and regular audits, Schiff remains skeptical about their methods.

Role of Chain Swaps in the Crypto Ecosystem

In the world of cryptocurrencies, inter-blockchain asset transfers are facilitated by chain swaps, a key component that ensures smooth transactions. This feature empowers users to tap into liquidity and trading possibilities spanning various blockchains, thereby boosting market fluidity and effectiveness.

By opting to perform a chain swap to the Tron network, the stablecoin issuer is demonstrating their dedication to ensuring liquidity across various platforms they support. The Tron blockchain stands out as one of the main platforms hosting USDT, resulting in significant trading action.

Even though it holds a strong position, the issuer of the stablecoin has encountered difficulties in keeping its market value steady. The implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation back in December had an overall negative effect on the stablecoin’s market standing.

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2025-01-07 02:36